But the State Bank of India (SBI) is reportedly preparing to turn down the company's $1 billion loan request for the project.

Sources with direct links to the move told Reuters a preliminary deal, signed in November supporting the loan, was simply a memorandum of understanding pending further appraisal.

It's understood the original agreement was met with anger in India.

The reports follow Queensland Premier Annastacia Palaszczuk's midweek announcement she'd struck a deal to dump dredged material on land instead of in the Great Barrier Reef Marine Park.

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The Premier said that under the agreement with Adani and GVK, spoil would be dumped on land, known as T2, next to the existing terminal - not on the Caley Valley wetlands or within the Great Barrier Reef World Heritage Area.

This led to some heralding the project one step closer to reality.

But with reports SBI will no longer invest, the environmental lobby says the entire project is in turmoil.